When thinking how to invest one´s money, most people think about which stocks to buy, the hot tips of today and the potential stars of tomorrow. Less thought is put into building a robust portfolio, that will stand the test of time: changes in policy, changing economic conditions, emerging new technologies and deprecated business models can all have huge impacts on stock´s performances. There is no way of predicting the future. Instead of relying on luck, there are ways to improve your odds: the magic word is diversification. With this article, we try to give you the basic knowledge for creating a robust diversified portfolio.

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Can you make a living from trading? Do you want to quit your dayjob, exchange your office desk with your private desk at home and live from the profits you make from trading? If you believe thousands of youtube videos, blogs of successful daytraders and the omnipresent advertising of retail brokers (by the way: if it is omnipresent for you, the tailored online advertisement industry already knows a lot about you ;)) suggest that this is no big deal. And isn´t that the ultimate dream? Having the personal freedom to trade whenever, whereever you want to (and not to do so when you don't want). Lets approach the question with some cold and rational real world considerations. To state it upfront: all assumptions about the amount of money you make and how good a trader you are are just that- assumptions. We just present a train of thought and some tools- your mileage may vary. Feel free to adapt accordingly.

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How are the actual prices for stocks determined? A trivial question at first glance, 95% would blurt out «Eeeeasy: demand and supply!». Well, not entirely false. But what exactly is the mechanism behind that? How does this exchange machine work under the hood? This is not only great knowledge for bragging at dinner parties, but an essential foundation for becoming a better trader. Knowing how stock prices are determined and what happens to orders after submission to your broker is important for your ability to pick the right tools from your toolchest. Read more to learn why (and incidentally learn why you want liquid markets).

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This article deals with an addition of the ichinscratchy system, that was introduced with version 0.2.1: A filter that enhances the quality of Kumo breakout signals. For this I owe a "thank you" to a couple of people:

Kumowizard and TA Scilab Ichimoku (you can follow them on twitter) who brought up the problem initially, and Yeara Kozlov and Tino Weinkauf, who wrote the Persistence1D library.

The article describes the problem, suggests a possible solution and describes the results of an implementation that incorporates the solution.

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A couple of weeks ago I read somewhere you couldn't build a trading system on isolated components of the Ichimoku Kink Hyo System, because each indicator works together with several others and only in combination the true power of Ichimoku unfolds. Sounded reasonable that time, but after a while I started to question that. Why should this not work? In the end such a system is trend following system build on a moving average at it´s core. Admittedly, the Kijun-Sen indicator is calculated differently than the SMAs or EMAs of this world, which most traders should be familiar. But it still is a moving average, and combined with a reasonable exit strategy I did not see why such a try should be doomed. That said, I fired up my program and did some backtesting :)

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This is an updated version of an article I originally posted in German (change language with the little flags in the upper right). After posting a lot of charts and chart snippets lately, I thought I could share some ideas (and code :)) with whoever is interested in Gnuplot. When I made the initial design/architecture of my (future) trading system framework, I added a charting component to my wishlist. Not because I needed it for the actual trading, but for debugging the signal generation part (and of course enhance my signal posts on this blog with some visuals). Almost instantly Gnuplot came to my mind, a scientific plotting utility with scripting capabilities. The best part: it is free and open source software, free as in free speech AND free beer! :) And of course, to conclude the teaser with shameless name-dropping: picking up a code snipped John Bollinger posted more than 11 years ago! So I spend a couple of evenings with Gnuplot, googling and playing around...

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In einem früheren Beitrag bin ich auf Golden und Death Crosses diverser Indikatoren eingegangen, bzw. wie man die Erkennung eines solchen in einem Computerprogramm abbildet. Versucht man Ichimoku in einem solchen Programm zu implementieren, kommt man schnell vom Hundersten ins Tausendste. Anlass dieses Blogposts ist ein Detail, dass mir bei der ursprünglichen Implementierung durch die Lappen gegangen ist, auf das ich aber beim Neuschreiben des Handelssystems gestoßen bin.

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Die Neuimplementierung des Ichimoku Handelssystems schreitet gut voran. Die Auswertung der ersten Handelssignale ist programmiert, Zeit um die Ideen dahinter etwas zu rekapitulieren. Betrachtet man einen Chart, ist es für einen Menschen sehr intuitiv, das Kreuzen zweier Linien in diesem Chart zu erkennen. Tut man dies für Ichimoku mit seinen fünf Indikatoren, wird die Sache zwar aufwändiger, im Kern vergleicht man aber jeweils nur zwei Linien gleichzeitig. Der folgende Artikel dreht sich darum, wie ich versucht habe, dem Computer die selbe -eigentlich absolut triviale- Tätigkeit beizubringen.

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In den letzten paar Tagen habe ich mich viel der Schnittstelle meines Programmes zu mysql beschäftigt, die API steht sogut wie. Das ist letztlich aber ziemlich langweilig (=darüber blogge ich wenn ich mal ein Regenwochenende Zeit habe), deshalb nun zu etwas völlig Anderem: In diesem Blogbeitrag bin ich auf die Infrastruktur und das Drumherum für das neue Handelssystem eingegangen. Dort habe ich erwähnt, dass zur Erleichterung der Entwicklung und als nettes Extrafeature die Ausgabe von Charts geplant ist. Die letzten zwei Abende habe ich mit Gnuplot, googlen und Herumprobieren verbracht, das Ergebnis kann sich meiner Meinung nach sehen lassen.

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Wie im letzten Blogbeitrag beschrieben und begründet, werde ich mein Handelssystem (bzw. das Framework dafür) von Grund auf neu implementieren. Inzwischen sind die Ideen konkreter, einige Zeilen Code probehalber geschrieben und die zuerst diffuse Idee wird langsam greifbarer. Im Folgenden werde ich auf die Werkzeuge eingehen, die ich für das neue System zu nutzen gedenke.

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